Global Market Cues

US markets closed higher for the second straight session, led by a revival in the AI trade. S&P 500 rose 0.88% and Nasdaq gained 1.3%. Nvidia jumped 4% on reports of a review allowing AI chip sales to China, while Oracle surged 6% after TikTok agreed to sell its US operations to a JV including Oracle and Silver Lake. GIFT Nifty indicates a strong open, up 146 points at 26,176. The US 10-year yield was flat at 4.14%. Brent crude traded near $61/bbl and the Dollar Index stood at 98.7. Asian markets are showing signs of a Santa rally for the second straight day. Precious metals remain strong—silver at record highs, gold near peak levels, and platinum above $2,000 for the first time since 2008—on rate-cut bets and geopolitical tensions. Bitcoin rose 1% to near $88,000. Post BoJ decision, Japan’s 2-year yield climbed to 1.105%, the highest since 1997. BOJ minutes are due on December 24. India View Nifty and Bank Nifty showed strength in the previous session with continued sector rotation. Pre-Budget themes are gaining traction, though the lack of fresh triggers may keep markets range-bound. Strategy remains buy-on-dips for positional trades. The rupee strengthened past 89.6 per dollar, likely aided by RBI intervention. India VIX stayed below 10 for the third session, indicating very low volatility. FIIs continue buying in the cash market for the third day, while FII shorts remain high at 91%, suggesting narrow markets. SEBI clarified no change in short-selling rules. Infosys ADR saw volatility due to an NYSE glitch. Trade Bias Longs: High beta stocks, railways, defence, pre-Budget themes Shorts: Select BFSI